PART 1A

The Regulators
CHAPTER 3

Further provisions relating to FCA and PRA

Rules

Requirement to review specified rules
3RC
1
The Treasury may by direction require a regulator to carry out a review of specified rules if—
a
the rules have been in force for at least 12 months,
b
the Treasury consider that it is in the public interest that the rules are reviewed, and
c
it does not appear to the Treasury that—
i
the regulator is carrying out, or proposes to carry out, a review of those rules, or
ii
if the regulator proposes to carry out a review, the proposals are appropriate for the purposes of carrying out an effective review.
2
Subsection (1) only applies to rules falling within section 3RA(1).
3
The Treasury must consult the regulator concerned before giving a direction under subsection (1).
4
In exercising the power under this section, the Treasury must have regard to the desirability of minimising any adverse effect that the carrying out of the review may have on the exercise by the regulator of any of its other functions.
5
A direction under subsection (1) may—
a
specify the period within which a review must be carried out;
b
determine the scope and conduct of a review;
c
require the provision of interim reports during the carrying out of a review.
6
Provision made in a direction under subsection (5)(b) may include a requirement—
a
for a review to be carried out by a person appointed by the regulator who is independent of the regulator;
b
for any such appointment to be made only with the approval of the Treasury.
7
As soon as practicable after giving a direction under subsection (1) the Treasury must—
a
lay before Parliament a copy of the direction, and
b
publish the direction in such manner as the Treasury think fit.
8
Subsection (7) does not apply where the Treasury consider that publication of the direction would be against the public interest.
9
A direction under subsection (1) may be varied or revoked by the giving of a further direction.
Pt. 1A substituted for Pt. 1 (24.1.2013 for specified purposes, 19.2.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), ss. 6(1), 122(3) (with Sch. 20); S.I. 2013/113, art. 2(1)(b)(c)(2), Sch. Pts. 2, 3, 4; S.I. 2013/423, art. 3, Sch.
Ss. 3RA-3RD and cross-heading inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), ss. 29(2), 86(3); S.I. 2023/779, reg. 4(t)